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Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the propose

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Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Total variable cost = (Cost of goods sold 70%)+(Selling expenses *75%)+(adminstrative expenses 50%) = (102000

Thus the final answer Unit Variable Cost Unit Contribution Margin 89 100 Part 3) Break even sales – Fixed Cost / contribution

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